In these difficult times Canadians need to support each other and their energy industry. The true energy story in Canada is one of innovation and safety which should be celebrated. The opportunities it creates spread across the country whether you work directly in energy or not. Please take the time to watch this video which was produced by Tourmaline and Birchcliff. https://youtu.be/BlAil_zuyBw
Recent Blog Posts
UCP are addressing the influence of third parties in Alberta’s Energy industry. Click here to read more:
The Alberta NDP have committed to developing new strategies to support oil and gas development. Recently Rachel Notley is offering tax credits and other incentives to support upgrader development in the province.
If this type of plan was started years ago we may have benefited from a more stable demand and more control over markets. Time will tell but it is encouraging to see out of the box thinking in support of our industry.
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Encana’s new agreement with Keyera gives them the added capacity to develop Montney interests. The end result will be added capacity at an efficient cost which bodes well for the long term performance of Encana in the Montney. This is a huge stride towards Encana’s goal of doubling liquid production in the area by the end of 2018.
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Alberta is losing any competitive advantage in the race to develop clean energy. Not being decisive on methane emissions is a step in the wrong direction. Click here to read more:
Canadian oil and gas prides itself in leading the industry in many areas but methane reduction is not one of them. Six US states already have strong regulations in place and producers that are committing to a goal of zero emissions. We cannot claim to be energy leaders when the evidence is to the contrary.
Statoil already sold its oilsands assets due to pressure to supply cleaner energy. We do not need to push investment out of the province when the industry is still fragile in many areas.
The oil and gas industry in Alberta takes it on the chin again. While producers are facing bankruptcy and the federal government is handing cheques out to everybody outside Alberta it seems they can’t catch a break. The Alberta regulator is light years ahead of their neighboring provinces when it comes to getting a handle on inactive oil and gas assets yet they don’t get any good press for leading the way. Learn more: http://www.cbc.ca/1.4108164
The Alberta oilpatch may have to double methane reduction strategies to meet its target of a 45% reduction. Currently only venting and flaring are required to be measured which is not accounting for a large percentage of total methane entering the atmosphere.
Recently studies were completed where oil producing regions were flown over to determine methane release. The fly overs also measured ethane to eliminate cattle methane production from their findings. In Lloydminster specifically the methane measured was almost 4 times the reported amounts from industry. Other areas were more accurate with Red Deers actual emissions being roughly equal to the reported totals.
If methane can be captured there is potential to generate 1.6 Billion of saleable gas but the cost for producers to meet regulatory drafts may be 3.3 Billion.
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Surface Solutions is proud to share our recognition as a 10 year member of ISNetworld. We take safety seriously and have done since our beginnings almost 20 years ago.
When considering an optimization/regulatory/completions partner don’t accept any less. If corners are cut on safety where does it stop. Be it training, equipment quality or reporting Surface Solutions strives to lead the industry.
The case of Lexin draws attention to the AER’s handling of orphan wells in Alberta. Alberta may be exposed to up to $300 Billion in liabilities to clean up inactive wells. Producers claim the regulator is protecting large producers at the expense of small companies. This favoritism is not the best way to manage inactive wells in the province.
Smith and Robins represent one of the landowners, who have flocked to Alberta's surface rights board, to ask companies like Lexin to pay rent for using their land to mine oil and gas and try to force it clean these places.
Lexin is the largest and most irresponsible company to speak of for its poor performance. It is due to the growing problem of the contamination of abandoned, orphaned and inactive wells and finally, external entities to pay for those damages, that is to say , Taxpayers through public bodies or the entire oil industry that exists in the province of Alberta.
The AER has made a sum of liabilities for damages that have so far reached the amount of $ 30.5 billion; a source linked to the industry for being a former employee of the same indicates that the overall total could reach $ 300 billion.
Producers claim the regulator is protecting large producers at the expense of small companies. This favoritism is not the best way to manage inactive wells in the province: Click here to read more:
Now more than ever the Alberta’s Energy Regulator (AER) is showing producers will not bully it. Ultimately they expect the responsible management of our resources and the associated equipment As Albertan’s we should cautiously applaud proper resource development with an eye on the economy.
The AER announced the suspension of 1,380 wells Lexin Resources Ltd, along with its facilities and pipelines, as this company announced that they could not continue to maintain acid wells, these emanate acid gas containing the deadly hydrogen sulfide.
Since last summer the AER has been talking about this issue with producer Lexin and issued an environmental protection order to prevent this company from complying only with the parameters it wants.
The law caused the company to change its sweet gas acid wells south of the city which makes this a minor concern. Lexin owes more than $ 70 million in security deposits for its end-of- life obligations, according to the AER.
In addition to suspending licenses, the environmental protection order issued to the company and an affiliated entity: LR Processing Ltd., requires them to address environmental concerns at its Mazeppa sour gas plant. The AER has taken a strong stand in this case and conducted 276 inspections of Lexin facilities last year.
As part of the AER action, the Orphan Well Association has assumed the "care and custody" of Lexin wells and services for the time being. The critical reaction of the Alberta energy regulator makes it possible to protect not only the environment but also the economy and lives of people living in nearby cities.
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